UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the third quarter ended March 31, 2006
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission File Number: 000-51760
EASY GOLF CORPORATION
(Exact name of small business issuer as specified in its charter)
NEVADA 20-2815911
(State of incorporation) (I.R.S. EMPLOYER ID NO.)
3098 South Highland Drive, Suite 323
Salt Lake City, Utah 84106-6001
(Address of principal executive offices) (Zip Code)
(801) 467-2021
(Issuer's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).
Yes [ ] No [X]
The number of shares outstanding of each of the Issuer's classes of common
equity, as of the latest practicable date:
Class Outstanding as of May 11, 2006
- ----------------- ----------------------------------------
Common Capital Voting Stock, 3,506,428 shares
$0.001 par value per share
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Quarterly Report on Form 10-QSB filed by
Easy Golf Corporation ("Easy Golf," "Company," "us," or "we") constitute
statements identified by words such as "will," "may," "expect," "believe,"
"anticipate," "intend," "could," "should," "estimate," "plan," and similar
words or expressions, relate to or involve the current views of management
with respect to future expectations, objectives and events and are subject to
substantial risks, uncertainties and other factors beyond our control, all of
which may cause actual results to be materially different from any such
forward-looking statements. Such risks and uncertainties include those set
forth in this document and others made by us in the future. Any forward-
looking statements in this document and any subsequent document must be
evaluated in light of these and other important risk factors. We do not intend
to update any forward-looking information to reflect actual results or changes
in the factors affecting such forward-looking information.
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
BALANCE SHEETS
March 31, June 30,
2006 2005
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 107 $ 186
Inventory 3,568 -
------------ ------------
Total Current Assets 3,675 186
Other Assets
Deposit 116 -
Patents & trademarks 3,837 4,185
------------ ------------
Total Other Assets 3,953 4,185
------------ ------------
Total Assets $ 7,628 $ 4,371
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts payable $ - $ 313
Advances from stockholders 19,190 3,338
------------ ------------
Total Current Liabilities 19,190 3,651
Stockholders' Equity
Common Stock - $0.001 par value, 50,000,000
shares authorized 3,506,428 issued and
outstanding 3,506 3,506
Additional paid-in capital 426,314 426,314
Accumulated Deficit (425,170) (425,170)
Deficit accumulated from April 2, 2004,
date of inception and development stage (16,212) (3,930)
------------ ------------
Total Stockholder's Equity (11,562) 720
------------ ------------
Total Liabilities and Stockholders' Equity $ 7,628 $ 4,371
============ ============
The accompanying notes are an integral part of these financial statements
F-2
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Period
From April
2, 2004
For the Three For the Nine (Date of Inception
Months Ended Months Ended of the Development
March 31, March 31, Stage) through
2006 2005 2006 2005 March 31, 2006
--------- -------- -------- -------- --------------
Sales $ - $ - $ 187 $ - $ 187
--------- -------- -------- -------- ---------
Total Sales - - 187 - 187
Cost of Goods Sold - - 70 - 70
--------- -------- -------- -------- ---------
Total Cost of Goods Sold - - 70 - 70
--------- -------- -------- -------- ---------
Gross Profit - - 117 - 117
Operating Expenses
General &
Administrative 2,083 2,279 12,051 2,279 15,187
Research & Development - 328 - 328 328
Amortization 116 116 348 466 814
--------- -------- -------- -------- ---------
2,199 2,723 12,399 3,073 16,329
--------- -------- -------- -------- ---------
Loss From Operations (2,199) (2,723) (12,282) (3,073) (16,212)
Other Income
Interest and
dividend income - - - - -
--------- -------- -------- -------- ---------
Loss Before Income
Taxes (2,199) (2,723) (12,282) (3,073) (16,212)
Benefit for Income
Taxes - - - - -
--------- -------- -------- -------- ---------
Net Loss $ (2,199)$ (2,723)$(12,282) $ (3,073) $ (16,212)
========= ======== ======== ======== =========
Basic Loss per Share $ (0.00)$ (0.00)$ (0.00) $ (0.00) $ (0.01)
========= ======== ======== ======== =========
Weighted Average
Common Shares Used In
Per Share Calculations 3,506,428 1,270,207 3,506,428 813,169 2,136,168
========= ========= ========= ======= =========
The accompanying notes are an integral part of these financial statements.
F-3
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Period
From April 2, 2004
(Date of inception
of the Development
For the Nine Months Ended Stage through
March 31, March 31, March 31,
2006 2005 2006
------------ ------------ -----------------
Cash flows used in operating
activities:
Net income (loss) $ (12,282) $ (2,723) $ (16,212)
Adjustments to reconcile net
loss to cash used in
operating activities
Amortization 348 466 814
Changes in operating assets
and liabilities:
Inventory (3,568) - (3,568)
Deposit (116) - (116)
Accounts payable (313) - (1)
Income taxes payable - - -
------------ ------------- ----------------
Net cash used in operating
activities (15,931) (2,257) (19,083)
Cash flows from investing
activities:
Net cash flows provided by
investing activities - - -
Cash flows from financing
activities:
Advances from stockholders 15,852 2,267 19,190
------------ ------------- ----------------
15,852 2,267 19,190
------------ ------------- ----------------
Net increase in cash (79) 10 107
Cash and cash equivalents at
beginning of period 186 - -
------------ ------------- ----------------
Cash and cash equivalents at
end of period $ 107 $ 10 $ 107
============ ============= ================
The accompanying notes are an integral part of these financial statements.
F-4
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 -- INTERIM FINANCIAL STATEMENTS
The financial statements for the 9 months ended March 31, 2006 were prepared
from the books and records of the company. Management believes that all
adjustments have been made to the financial statements to make a fair
presentation of the financial condition of the company as of March 31, 2006.
The results of the nine months are not indicative of a full year of operation
for the Company.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
financial statements be read in conjunction with the financial statements and
notes thereto included in the Company's June 30, 2005 audited financial
statements. The results of operations for the periods ended March 31, 2006
and 2005 are not necessarily indicative of the operating results for the full
year.
NOTE 2 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Inventories. Inventories are stated at the lower of cost or market, cost is
determined using the weighted average method. Inventory consist of finished
goods valued at $3,568.
NOTE 3 RELATED PARTY TRANSACTIONS
Related Party Advances. During the period from inception of the development
stage April 2, 2004 through March 31, 2006, an officer and shareholder of the
Company advanced the Company $19,190. The advances bear no interest and are
due on demand.
Management Compensation. For the nine month period ended March 31, 2006 and
2005, the Company did not pay any compensation to any officer or director of
the Company.
Office Space. The Company has not had a need to rent office space. An
officer of the Company is allowing the Company to use his address, as needed,
at no expense to the Company.
NOTE 4 GOING CONCERN
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles in the United States of America,
which contemplate continuation of the Company as a going concern. However,
the Company has does not have adequate working capital to pursue its planned
operations. These factors raise substantial doubt about the ability of the
Company to continue as a going concern. In this regard, management is
proposing to raise any necessary funds through loans, through additional sales
of its common stock or through the possible acquisition of other companies.
There is no assurance that the Company will be successful in raising this
additional capital.
F-5
EASY GOLF CORPORATION
(fka Bio-Thrust, Inc.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 5 LOSS PER SHARE
The following data show the amounts used in computing loss per share:
Cumulative from
the Inception of
For the Three For the Nine the Development
Months Ended Months Ended Stage on April
March 31, March 31, 2, 2004 through
2006 2005 2006 2005 March 31, 2006
--------- -------- -------- -------- --------------
(Loss) from continuing
operations available
to common stockholders
(numerator) $ (2,199)$ (2,723)$(12,282) $ (3,073) $ (16,212)
--------- -------- -------- -------- -------------
Weighted average number
of common shares
outstanding used in
earnings per share
during the period
(denominator) 3,506,428 1,270,207 3,506,428 813,169 2,136,168
--------- --------- --------- ------- -------------
Dilutive loss per share were not presented, as the Company had no common
equivalent shares for all periods presented that would effect the computation
of diluted earnings (loss) per share.
F-6
Item 2. Management's Discussion and Analysis or Plan of Operation
We are a start-up, internet-based eCommerce company that offers and sells a
newly designed and invented specialty golf training aid which teaches a person
to hit a golf ball straight. This product is called "The Swing-Channel TM Golf
Mat." We expect to get a federal trademark and tradename issued soon on the
phrase "SWING-CHANNEL" and last year, we applied for a utility patent with the
U.S. Patent and Trademark Office.
Our website is www.easygolf.biz and it is hosted by Yahoo! Only as recently
as last October did we perfect our product so that it is now available for
sale. Also, because we were only able to offer our product for sale after
last year's golf season was over, we have not had the opportunity to offer our
product for sale during an actual golf season. During this, our third quarter
ended March 31, 2006, and because it was winter and not the traditional golf
season, we elected to do no advertising on the Internet. Starting on April 1,
2006, however, we began ad campaigns on both Google AdWords and Yahoo! Search
Marketing, all as explained in greater detail below. So far, and since it is
still early in the spring, these efforts have not produced any sales though
they have generated an average of 100 "hits" per day on our website. During
the quarter, we also gave away three of our golf training aid products for
promotional purposes only.
Selected Financial Data
Because we have not been operating long enough to generate significant sales,
selected financial data would not be particularly meaningful. Reference is
made to our financial statements included in Item 1 above.
Since our emergence from some-15 years of dormancy, we have incurred
accounting costs and other expenses and fees in connection with reactivating
ourselves, acquiring our golf property, and the preparation and filing of a
Form 10-SB registration statement filed with the Commission on January 26,
2006. Since our re-emergence from dormancy on April 2, 2005, and excluding the
$6,976.15 in patent attorney's fees incurred by our officer and director in
his individual capacity and which we ran through our books and records for
convenience, we have incurred total expenses as of March 31, 2006 of $16,885.
Funding of these and other expenses was from working capital provided by our
only officer and director, namely, Mr. Coombs, a person who, because of his
84% ownership interest in us, has an obvious vested interest in seeing us
successfully market our product. As of the same date, namely, the end of our
third quarter ended March 31, 2006, we had $107 in our checking account. As of
the date of this quarterly report, we have $268 in our checking account. Since
the end of our third quarter ended March 31, 2006, and other than the
accounting fees necessary to prepare this Report, we have incurred no
additional fees or expenses that we are presently aware of.
As stated above, we did not advertise on Google AdWords or Yahoo! Search
Marketing during our third quarter. Again, this is because it was the non-
golf season and to do so seemed like a waste of resources. As stated above, we
have resumed advertising in limited fashion during our fourth quarter
commencing on April 1 and in anticipation of spring and summer.
Liquidity and Capital Requirements
At March 31, 2005, we had $107 in our checking account. As of the date of this
Quarterly Report, we have approximately $268 in our checking account. What we
have in our checking or bank account at any given time is insignificant
inasmuch as our working capital is, and has been, funded by personal advances
from an officer and director. These advances do not require interest payments
at the present time and, unless we become profitable, we do not believe that
it is at all likely that our agreement with our sole officer and director, Mr.
Coombs, would be modified to provide for such. Mr. Coombs's loans are
considered or designated as "advances," inasmuch as they do not bear interest.
At present, there are no plans to charge interest. In the event we modify our
oral agreement in the future with Mr. Coombs to allow for the charging of
interest, we do not believe it would have any material impact on us or our
liquidity because both we and Mr. Coombs would not agree to such a
modification unless we were profitable and could afford to pay interest.
Though we have nothing definitive in writing with Mr. Coombs, we consider Mr.
Coombs's obligation to advance us money to maintain our reporting obligations
a legal obligation of his upon which both we and investors can rely.
We will be able to satisfy our cash requirements for not only the next 12
months but at least for the next three (3) years in that our sole officer and
director has committed himself to advancing what funds are necessary to
satisfy our cash requirements and keep us current in our 1934 Exchange Act
reporting obligations. We believe that this time period is consistent with the
disclosure in our Plan of Operation described below in that we believe that
within at least three years, we should be able to successfully carry out our
business plan. See the section titled "Plan of Operation" below. Having said
this, we are unable to guarantee that upon the expiration of three years from
now, that individual members of management will continue to advance us
sufficient money to allow us to continue in our reporting obligations. We do
not mean to imply, however, that individual members of management will NOT
continue to advance us funds beyond the next three years, particularly if it
appears that we will indeed be able to successfully carry out our business
plan if we continue beyond the next three years. If management does not desire
to loan or advance us sufficient funds to continue beyond the next three years
for the simple reason that the prospects of our business plan look bleak, we
may be required to look at other business opportunities, the form of which we
cannot predict at this time, as to do so would be highly speculative on our
part.
The amount of money necessary to implement and carry out our business plan
over the next fiscal year is as follows: The cost of maintaining our website
hosted by Yahoo! is currently $39.95 per quarter or $120 per year. Over the
next year, and because we have the capability of generating our quarterly and
annual reports "in-house," we have budgeted no money to be spent in this
regard in legal fees. With respect to our annual "in-house" accounting and
outside, independent auditor fees and costs, we have budgeted as much as
$8,000. We are also budgeting Edgarization costs and fees of at least $200 per
quarter and $500 for our Annual Report on Form 10-KSB. In the normal course of
business, we anticipate spending at least $1,000 per year on Edgarization
costs and expenses. Finally, we have budgeted approximately $500 per year in
annual transfer agent fees and costs; $300 of this figure is our annual stock
transfer agent maintenance fee. Other transfer agent costs and fees will
ordinarily be the obligation of each shareholder submitting his or her shares
for transfer. Finally, in December 2005, we obtained a products liability
insurance policy at a cost of $914.38 per year. This policy comes up for
renewal next December 15. This means that we anticipate that at least $11,000
in cash per year shall be necessary to satisfy our minimal cash requirements.
We currently have no sources of financing, including bank or private lending
sources, or equity capital sources. For the time being, we do not require such
sources. If we are able to generate the sale of an average of a mere 16.66
mats per month, we can pay for $1,000 of Internet advertising expenses each
month. Since no one knows who we are and we and our product are both
essentially unknown, we are hopeful that we may be able to accomplish this
short term goal by the end of this-coming golf season, that is, once our name
and our product get better known in the marketplace and some of our Internet
advertising takes hold.
We are hopeful that by the end of the golf season we may be able to wholesale
our product to some retail golf and sporting goods store chains. In this
regard, during the quarter we shipped a promotional Swing-Channel TM Golf Mat
to a national golf retail chain store. In talking to their director or
manager of purchasing, we were told that before this store would take our
product, we would be required to provide our product to them in colored retail
boxes. We are currently checking into the cost of creating colored retail
boxes for placement in retail stores. We believe this may be an expensive
endeavor; however, if a large retail chain sporting goods store is willing to
take our product, this additional cost will likely be worth it.
Express Obligation of Our Sole Officer and Director to Advance Certain
Necessary Funds Over the Next Three (3) Years.
In light of our capital requirements mentioned in the previous discussion and
otherwise, our sole officer and director has agreed to advance us sufficient
funds, over at least the next three years, to pay for our accounting and
Edgarization fees and costs, all as necessary to remain current in our
reporting obligations with the Commission. We have NOT entered into any
formal, written agreement with our officer and director that contractually
binds or obligates him, in writing, to advance us funds for the next three
years for this purpose, though we consider this commitment on his part to be a
legal obligation upon which we and our shareholders can rely. Having said
this, we will nonetheless be required to evaluate our business plan over the
next year. At the expiration of this year's golf season and assuming our
business plan has not been successful, or even partially successful, during
that time, management will have to re-evaluate our overall plans, intentions
and strategies and, in particular, Mr. Coombs will then have to evaluate
whether, and to what extent, he wants to continue to advance us funds. As of
the date of this Quarterly Report, he has advanced us just under $20,000 in
cash.
Receipt of "Notice of Allowance" from the U.S. Patent and Trademark Office.
During late February, we received a Notice of Allowance from the U.S. Patent
and Trademark Office (USPTO) relative to our March 2005 application for a
federal trademark and tradename of the phrase "Swing-Channel." This federal
trademark and tradename was applied for by our licensor for use in the golf
industry, particularly for use in connection with golf training aids. The
serial number of this trademark is 78/577944. The mark itself is SWING-
CHANNEL (standard character mark). According to the Notice of Allowance, we
are given six (6) months from February 21, 2006, to file either a Statement of
Use, or if we are not yet using the mark in commerce, a Request for Extension
of Time to File a Statement of Use. Such a Request can be made every six
months for five consecutive times until a Statement of Use is filed. Failure
to file one of these required documents during the appropriate time period
will result in the abandonment of the application. On Friday, May 5, 2006,
our licensor filed a Statement of Use with the U.S. Patent and Trademark
Office. We do not know how long it will take for the U.S. Patent and
Trademark Office to review our Statement of Use but our licensor anticipates
being issued the trademark and tradename in the near term. When this occurs,
we will be able to use the registered trademark designation or insignia
<registered trademark> next to the phrase SWING-CHANNEL in all of our
documentation, labeling and literature.
PLAN OF OPERATION
Our principal business plan is to promote, market and sell our golf training
aid product known as "The Swing-Channel TM Golf Mat" initially on the Internet
through our custom built website, which only became operational in late
October 2005, and later, once more sales are made, through specialty websites
that only offer and sell golf-related products and also sporting goods retail
stores around the United States and Canada, possibly Great Britain. Because
this is a new product and we are a start-up enterprise, the sporting goods and
golf industry is totally unfamiliar, at this stage, with our product. For this
reason, we believe it will take time for our product to "catch on" and for any
significant or meaningful sales to occur. We believe that we must be patient
in this regard.
Our Website.
In mid-October 2005, our website was completed and became fully operational.
We now maintain a custom website hosted by Yahoo! Merchant Solutions. Our
website address is: www.easygolf.biz. Through our exclusive license
agreement, we also own and control the following 9 domain names:
www.easyhittinggolf.com, www.easyswinggolf.com, www.easyswinginggolf.com,
www.straighthittingolf.com, www.straightswinginggolf.com, www.swing-
channel.biz, www.swing-channel.com, www.swingchannel.biz, and
www.singchannelgolf.com. If a person types in one of these 9 domain names as
a web address, he or she is taken to our website. Our website hosting service
is under Yahoo!'s Merchant Starter Program. Yahoo! Merchant Solutions offers
three alternative website hosting services, each of which depends on the
amount of gross sales in a month period that the merchant generates. The basic
one, namely, the Merchant Starter Program, is for gross sales of under $11,000
per month. Yahoo! charges 1.5% per transaction for sales in this merchant
category, a category in which we currently fit. The second category, called
the Merchant Standard Program, is for between $11,000 and $80,000 in gross
sales per month. On-line retailers in this category are charged 1% per
transaction by Yahoo! The third Yahoo! hosting service category, called the
Merchant Professional Program, is for companies generating over $80,000 in
gross sales per month. In this host category Yahoo! charges 0.5% or half a
percentage point per transaction. Accordingly, the more sales one makes per
month, the cheaper Yahoo! charges as a processing fee.
Processing Orders.
Our new website has an active and operational shopping cart that accepts
American Express, Visa, MasterCard, Discover Card and other, less known credit
cards. Charges are processed through Paymentech, which is an adjunct to the
hosting services provided by Yahoo! Paymentech is a bank and credit card
processing service owned by Chase Bank. When sales are made on-line, we are
automatically notified by e-mail at contact@easygolf.biz. We then have 7 to
10 days to ship the product anywhere in the United States or Canada.
Paymentech, within 24 to 48 hours of the moment the charge is processed and
accepted, will directly deposit the revenue in our bank account maintained
with Chase Bank in Salt Lake City. This service dispenses with processing
credit cards ourselves and we believe more than justifies paying Yahoo! 1.5%
per transaction.
Orders are processed by us as follows: When we receive an order, we access our
on-line account with Federal Express and print off a Federal Express Ground
label. This label is then placed on a shipping box at the warehouse where we
manufacture and ship our product. We also place our own return address label
on the box which contains or is identified by the inscription "The Swing-
Channel TM Golf Mat." This is necessary in order to demonstrate to the U.S.
Patent and Trademark Office that we are using the trademark or tradename
"SWING-CHANNEL TM" in interstate commerce, thereby entitling us to this
federal trademark or tradename. See heading above titled "Receipt of Notice of
Allowance from the U.S. Patent and Trademark Office." After receiving an
order, we roll the mat up, face down, and put it in our custom made boxes. We
also insert the appropriate number of rubber tees or barricades in each box.
Further, each order includes an instructional brochure that is approximately 4
pages (with drawings) and which further includes a 1-page instruction sheet on
how to put the Mat together (with a drawing). Once this is done, we call
Federal Express Ground and no later than the following day, they will come to
our warehouse and pick up the product for shipment to the purchaser.
Shipping and Handling.
We ship by Federal Express Ground in custom boxes made especially for us by a
local company known as Packsize. The cost of these boxes will decrease
depending upon the volume of boxes we ask Packsize to make for us. Currently
the cost is over $2 per box. There are several other supplier sources for
these boxes but we believe that Packsize is the best and the least expensive
for our purposes. These custom boxes are 10 inches by 10 inches by 24 inches
(a size that neither UPS nor Federal Express can provide) and our Mat is
rolled up inside, face down, with the other features and accessories necessary
to the Mat enclosed. The $15 charge for shipping and handling includes
approximately $10 to $12 for Federal Express Ground charges and the difference
to us for handling and preparing the product for shipment. While United Parcel
Service (UPS) is a featured service associated with Yahoo! and UPS shipping
orders can be entered automatically through a Yahoo! order, Federal Express
Ground is approximately $5 per box/mat cheaper than UPS to ship a box of our
dimensions and weight (approx. 7 1/2 lbs.)
Assuming we work out a deal with a national retail sporting goods store chain,
if we do, we will be required to ship product in colored retail-quality boxes,
that is, boxes on the nature of a more durable but colored cereal box. Such
boxes will likely be made of what is known in the packaging industry as
"litholam." Since this is in the more distant future and we do not as yet
have a contract with any retail chain store, we have not as yet fully priced
what is necessary to print up and produce colored retail boxes.
Product On-Hand/Inventory.
Currently we have one roll of Athletic Sports Turf <registered symbol>
material in stock. This roll is 101 ft. by 12 ft. or 1,212 sq. ft. This roll
cost us $2,420 and because our Mat is 24 inches by 52 inches, this is enough
Athletic Sports Turf <registered symbol> material to make a total of 138 Mats.
We have also inventoried several hundred rubber tees or barricades, all of
myriad sizes, 16 of which are incorporated into, and shipped with, each Mat.
The several hundred rubber barricades we currently have in stock cost us
$1,205. We purchased all of these materials through our carpet wholesaler,
Robison Distributing Co., Inc., who purchased them directly from the
respective manufacturers. We are buying these materials from Robison
Distributing directly so that we can pay them Utah sales taxes. This dispenses
with the requirement on our part to independently calculate "use taxes" to pay
over directly to the Utah State Tax Commission. A consumer or buyer of goods
in Utah either pays "sales taxes" or "use taxes," but not both. We thus have
had nearly $4,000 of material in inventory with which to make Swing-Channel
Golf Mats upon receipt of future orders. In the event we run out of material,
we can order and then receive new material within at least 3 days. We have
other supply sources for these materials but at present, we believe these are
our best and most inexpensive sources.
To date, we have sold 2 Mats on-line and we have given three away to golf
retailers for promotional purposes. We thus have sufficient material on hand
to make 133 Mats.
Our Plan Over the Next 12 to 18 Months.
Our current suggested retail price on our mat is $79.95, plus $15 for shipping
and handling anywhere in the U.S. or Canada. To enhance or increase sales
volume, we are considering offering reduced price specials on our website,
though we haven't done so to date. At present, we are determining the best
price to charge for our product. At present, we believe that $79.95 is a fair
price for what we offer. We believe that people will pay a lot more than
$79.95 to learn to hit a golf ball straight and we believe and submit that our
product works. Conversely, we believe that for most people, $79.95 is a lot of
money. We can make no assurance that this opinion as to the fair price or
value of our product will not change. If, after 3 to 6 months, we are unable
to generate sales at $79.95, we will have no choice but to consider offering
our product for less. We may also consider special offers of two for a
substantially reduced price.
The foregoing paragraph is not to ignore that if we sell our product in bulk
to a national golf or sporting goods chain, or even a specialty golf website,
we will probably be required to sell our product, on a wholesale basis, for
less than $79.95. At present, we do not yet know what a national golf or
sporting goods chain, or even a specialty golf website, would be willing to
buy our product for.
There is little doubt that future Internet sales of our product will be driven
by the amount of money we are able and willing to spend on advertising. During
the next 12 to 18 months, we will actively pursue enhancing sales of our
specialty golf training aid on-line. Our second phase plan of operation,
assuming that the first phase is reasonably successful, will be to (1) develop
and market additional golf training aids that we invent, (2) to offer and sell
other golf training aids made by others on our website through licensing
arrangements, and/or (3) to acquire other properties, products or companies
that offer and sell such products on-line. These considerations are highly
speculative at this stage and otherwise in the distant future. For the time-
being, and because at a price of $79.95 our profit is approximately $50 to $55
per Mat (depending on volume), we want to focus our efforts on selling our own
product on-line. If advertising in limited fashion on Google AdWords, Yahoo!
Search Marketing, Website Pros, Ebay or any other website services we discover
and use prove successful, we will do what we can to increase such sales by
advertising in those venues more aggressively. At the same time, if our
initial on-line advertising strategy proves sufficiently successful, we will
then use the capital generated thereby to also place ads in recognized golf
magazines. Golf Digest, for example, has a circulation of 1.6 million golfers.
Golf Range Magazine, a wholesale magazine distributed to driving range and
golf course owners around the country, has a circulation of between 12,000 and
16,000. Other national golf-related magazines are Golf Magazine and Links.
There are at least 2 British golf magazines available in the magazine racks at
Barnes & Noble. Further, there are golf magazines that only advertise golf
products such at Golfsmith (www.golfsmith.com) and Edwin Watt's Golf
(www.edwinwattsgolf.com). If this supplemental strategy proves successful, and
we generate even more earnings from these particular efforts, we will consider
shooting a 15 or 30 second television commercial and running it on the Golf
Channel available on Cable TV, Dish Network and DirectTV. In this latter
regard, and though we lack the capital at the present time to expend for this
purpose, we have actually contacted an advertising agency in London, England,
that we found on-line and which specializes in inexpensive, short, humorous
commercials and which thinks we could make a short, funny ad for approximately
$5,000, taking advantage of the notion of people who hit a golf ball
everywhere but straight.
As set forth in the discussion immediately below, we also plan to advertise or
offer The Swing-Channel Golf Mat for sale on other websites, links to other
on-line retailers and specialty websites, specialty sporting goods magazines
and retail chain sporting goods stores, assuming the latter entities become
interested in carrying our product for sale in their retail outlets.
Our Current Marketing/Advertising Strategy.
As stated above, our basic marketing plan through the end of the golf season,
namely, September 30, is to aggressively advertise on the Internet. Our
specific budget and targets are set forth further below under the subheading
"This Golf Season Sales Targets." To accomplish our on-line mat sales
marketing ideas, we plan to commence simultaneous but limited advertising
campaigns on (1) Google AdWords, (2)Yahoo! Search Marketing, (3) Website Pros,
an affiliate of Discover Card, (4) Ebay, and (5) others we come across that we
determine are worthwhile and productive advertising venues for us and our
product. For example, Google AdWords describes its Internet marketing services
as follows:
Google AdWords ads connect you with new customers at the precise moment when
they're looking for your products or services [on the Internet]. The Google
Network reaches more than 80% of Internet users.
With Google AdWords you create your own
ads, choose keywords to help us match your
ads to your audience and pay only when
someone clicks on them [and thus goes to
your website].
During our fourth quarter starting on April 1, 2006, we have been running
three separate and on-going ad campaigns on Google AdWords. One of our current
ad campaigns on Google AdWords is at 50 cents per click or hit, one campaign
is at 75 cents per click or hit, and a third is at $1.00 per click or hit.
During the last 2 weeks of October 2005, we spent $290 advertising in this
fashion and we obtained 610 clicks or hits on our website at an average cost
of about 47 cents per click. Because the golf season was basically over
around the large majority of the country at that time, we ceased advertising
altogether on November 1. From November 24, 2005, the day after Thanksgiving,
until December 20, 2005, we resumed our advertising campaigns on Google
AdWords. This effort cost a total of $344.15 in which we received 668 clicks
or "hits" on our website. The average cost per "click" was $0.52. We also had
131,112 "impressions" or instances in which people opened a page with our ad
on it (though they did not necessarily click on our ad). If one desires, one
pays more per click to get his or her ad to pull up higher up in the search
engine results. For example, several competitors are spending more money per
click running Google AdWords ads with the Keywords "golf training aids" and
therefore, to appear on page 2 or 3 of that particular search as opposed to
page 7 or 8 of that same search, we would have to pay as much as $1 or even $2
per click, not 50 cents. The less one pays per click, the further down on the
search results pages one's ad appears. At the same time, we have used a daily
maximum advertising budget of $20. All Google AdWords ads are 4 lines. As set
forth in the beginning of this paragraph, we have resumed our Google AdWords
ad campaigns on April 1, 2006. Our current Google ad reads as follows:
SWING-CHANNEL GOLF MAT
Want to Hit a Golf Ball Straight?
Tired of Losing Golf Balls?
www.easygolf.biz
For the Christmas 2005 holiday season, we also began advertising for the first
time with Yahoo! Search Marketing. This on-line advertising service is very
similar to Google AdWords but requires a one-time initiation fee. It also
allows one to descriptively tailor his or her ads more towards one's
individual advertising or product needs. We find this service more complicated
and intricate than Google. Yahoo! Search Marketing describes its Sponsored
Search advertising option as follows:
Receive the highest return on investment when you advertise with
Sponsored Search. Advertise only to customers who are interested in
your products or services
* Pay only when users click through to your site
* Set your own cost-per-click
With Sponsored Search, you set the price you're willing to pay for
each customer who clicks on your listing. Unlike direct mail, you
won't have to pay for mailing lists, printing or postage, and you
won't pay for impressions as with banner ads and tiles. You pay only
for the interested customers who actually click through to your
site.
Our first advertising effort or experience with Yahoo! Search Marketing took
place from December 12 until December 21, 2005, all before Christmas, and cost
us a total of $176.39. In doing so, we obtained 345 clicks on our website at
an average cost of about $0.51 per click. We also received 74,276
"impressions."
In December 2005, we became a subscriber to Website Pros
(www.websitepros.com). This offers a different service than Google or Yahoo!
This service critiques, for optimum usage, the internal and other html
settings on one's website for Internet "crawlers." (A crawler is a computer
program that regularly goes out into the Internet and retrieves information
about your website based on the wording of your website and its internal
settings and then the crawler brings such information back to the search
engine.) This service also lists one's website in a variety of yellow
page and similar website search engine listings, all of which is to encourage
Discover Card holders to charge with their card on the website. This service,
which is reputedly worth at least $165 per month, costs us $49.95 per month.
For more information, reference is made to www.websitepros.com. As of the date
of this Quarterly Report, and for the time being, we are continuing to use and
subscribe to this service but, because we are not convinced that it is
bringing us any sales, we are thinking of discontinuing this service in June
when our subscription is up.
Ebay (www.ebay.com) allows a person to auction his or her product on-line.
Since mid-October 2005, we have randomly run 8 or 10 separate week-long
auctions of The Swing-Channel <trademark symbol> Golf Mat on Ebay but no one
has yet met our "reserve price" (i.e., the price that we are willing to sell
our product for) and therefore, we have not completed an Ebay auction.
Initially, our reserve price was $69.95. We recently lowered it in the last
few auctions we engaged in to $59.95. In our last three auctions, we received
several bids. As of the date of this Quarterly Report, we are not currently
running an auction on Ebay, if, for nothing else, because we are spending our
scarce resources on Google and Yahoo! ads. When we conduct an auction, we
auction our product on Ebay under the sporting goods category "golf" and under
the two separate subcategories "swing trainers" and "mats, cages and nets." We
have had on-line inquiries regarding our product and some bids but, as already
stated, no one has yet bid our reserve price, namely, the price at which we
are willing to sell. The auction ad with the features and photos of our
product we are running costs approximately $13 for a 7-day auction. Only when
one has sold 10 items on Ebay can one advertise on a "Buy Now!" basis. Since
we have not sold 10 items on Ebay, we do not currently qualify for the "Buy
Now!" option or feature. With the "Buy Now!" feature, the prospective buyer
knows the "reserve price," that is, he or she knows what price a person is
actually willing to sell the product for.
Marketing ideas that have not as yet been implemented by us include a desire
to additionally promote our website
(1) through links to other websites,
(2) through distributorship relationships with other sports and golf-related
websites,
(3) through ads placed in various retail and wholesale golf magazines such as
Golf Digest, Golf Magazine, Links, Golf Range Magazine, and others,
(4) attend golf tradeshows and expos across the country,
(5) through contacting and then supplying retail sporting goods stores and
retail specialty golf stores across the country with our product, either on
consignment basis or, on a high volume discounted basis for which they will
pay us in advance, and
(6) through television commercials on the Golf Channel at such time as
earnings or funding becomes available to shoot such a commercial and pay for
the cost of airing it on television.
As a courtesy to us, a company that manufactures and sells point of sale
accounting systems for golf course pro shops is now featuring a link to our
website for free. See www.cgmsgolf.com. There are also regular golf
tradeshows/expositions throughout the country from time to time. We will
actively look into attending these expositions and showcasing our product
there in a booth.
In order for our Internet/eCommerce business to succeed, we additionally plan,
among those things mentioned above, and on an on-going basis, to:
- -- make significant investments in our Internet/eCommerce business, including
upgrading our website as it becomes necessary
- -- get other golf or sports-related websites to link ours
- -- significantly increase online traffic and sales volume in every way we can
- -- attract and retain a loyal base of frequent visitors to our website who
will give us feedback about our product
- -- expand the products and services offered on our website
- -- respond to competitive developments and maintain our distinct brand
identity
- -- form and maintain relationships with strategic partners, particularly
retail sporting goods stores and outlets
- -- provide quality customer service
- -- continue to develop and upgrade our product, services and technologies
No Endorsements From PGA Professionals
Currently on our website we have one professional golf instructor and teacher
who has endorsed our product. See the heading titled "Testimonials" on our
website. We have not as yet approached anyone else to "endorse" our product,
as we have lacked the time or other opportunity at this stage and have instead
concentrated on getting our website operational and our product able to sell
and ship. Our current absence of a PGA professional's endorsement of our
product, assuming that we could obtain one, has therefore currently been a
business decision. As time goes on, we hope to be able to approach well-known
PGA touring professional golfers and see what it would take, or will take, to
get such a person's endorsement of our product. At present, we lack the
ability to offer any such person anything in exchange for his or her
endorsement. At such time as we can, we hope to be able to do so. We note
that one competitor with a product called "The Inside Approach," has been able
to obtain the endorsement of legendary golf pro Jack Nicklaus. We currently
lack the money or other resources to attract the endorsement of a golf
professional like Jack Nicklaus and can make no assurance that we will ever be
able to do so. While it is conceivable that we could issue such a person
"restricted" stock in us in exchange for an endorsement, we have no plans at
the present time to do so. We would also be leery of doing so unless we could
quantify, in some fashion, the amount of sales that such an endorsement would
generate or cause to occur. To issue someone stock, without knowing to what
extent it would increase sales and thus generate income, would likely be
irresponsible on our part and we have no intention of doing so without knowing
what the direct result or effect of that corporate action would likely be.
This Golf Season Sales Targets.
Basis: Sales of our mat at a suggested retail price of $79.95, plus
$15 for shipping and handling
Inventory: Currently we have enough material in stock and on hand to
make 133 Mats
Intention: To sell all 133 Mats we can now make by the end of September
30, 2006 (basically the end of this year's golf season)
Future: Our initial, short term goal is to sell at least 20 to 25
Mats per month during the regular golf season. We currently
have no way of predicting or knowing how many Mats the market
for our product will absorb or take
Management intends to strive, over the next 6 months, to market and sell 133
mats, all the material for which we have paid for and currently have in
inventory and on hand. In such event, we will then pour those profits into
beefed-up or enhanced Internet advertising campaigns. Our profit on the sale
of 133 mats would be approximately $7,000, depending upon how many we sell on
a discounted basis. This figure is arrived at on the basis of a $79.95 sales
price. As stated above, in the event that sufficient funds become available,
we will (1) beef-up our various Internet advertising campaigns, (2) see what
other websites will link our website to theirs, either free or for payment,
(3) contact and see what on-line golf product specialty retailers might be
willing to become distributors of our product and thus offer our product on
their website(s), (4) advertise in various golf and sports magazines, (5)
attend as many golf tradeshows and expositions as we can to create name
recognition for our product and otherwise make contacts in the industry, (6)
contact sporting goods retailers and see if they will buy our product at
reduced rates or take product on consignment, (7) consider, if feasible,
spending the money necessary to advertise on the Golf Channel. We believe that
this latter endeavor would cost us as much as $10,000 to $20,000, an amount of
money we do NOT at this time have to spend for such purposes and which we will
not likely have in the near future.
During the quarter we contacted the purchasing director of a national golf
chain retail store and sent him a promotional Swing-Channel Golf Mat. This
was the individual mentioned above who informed us that if his company
purchased any product from us on wholesale basis, that it would have to be
packaged and provided to them in a colored retail box meeting their
specifications. Having sent a promotional Mat to this individual about two
weeks ago, we have not yet been able to re-contact this individual. During
the quarter, we also placed calls to the person in charge of golf product
purchasing for a national retail sporting goods chain. It is our intention to
send this individual a promotional Mat as well. As of the date of this
document, this individual has not yet returned our calls. We believe that
because the golf season is just ramping up, these individuals are very busy.
We believe they will get back to us when they have time.
Employees, Experts, Consultants and Advisors.
Currently, we have no employees. Employees will NOT be necessary at this stage
of our development. Our sole officer and director will perform daily duties as
needed. We only intend to hire employees if and when the need develops. In
fact, there is nothing really that could occur that would require us to hire
employees. Unless processing orders becomes so time consuming for our sole
officer and director that he lacks the time to look up the orders and
communicate them to our warehouse facility to put a shipping package together,
we cannot envision what would occur that would require such. If sales start
growing over the next six months or year and if we are selling 100 mats a
month through our website and otherwise, we will likely be required to hire at
least one employee to take orders and assist in shipment of product. Since
this has not occurred and there is no assurance or current likelihood that it
will, we are not in a position to make further projections or estimates in
this regard.
At the same time, our sole director and officer, who is NOT a paid employee,
intends to defer any compensation that might be due or owed him until such
time as capital can be raised from sales.
In implementing our business plan, we are holding expenses to a minimum and we
plan to obtain expert and other services on a contingency basis if and when
needed. Right now, we have no need for any outside experts, advisors or
consultants. If we engage outside advisors or consultants for any particular
purpose, we will have to make a determination as to how such persons will be
compensated. We have NOT made any arrangements or definitive agreements as yet
to use outside experts, advisors or consultants for any reason. This is
because, so far, we have not needed to.
We do NOT intend to use or hire any employees, with the possible exception of
part-time clerical assistance on an as-needed basis. Outside advisors or
consultants will be used only if they are needed and can be obtained for
minimal cost or on a deferred payment basis. Other than our website
maintenance technician that we shall continue to use to update or revise our
website as it becomes necessary, we are not aware of any situation in which we
would need an outside advisor or consultant.
Item 3. Controls and Procedures
We maintain controls and procedures designed to ensure that the information
required to be disclosed in the reports that we file or submit under the
Securities Exchange Act of 1934 is recorded, processed, summarized and
reported within the time periods specified in the rules and forms of the
Securities and Exchange Commission. Based upon our evaluation of those
controls and procedures performed as of the end of the period covered by this
report, our chief executive officer and the principal financial officer (or
persons performing similar functions) concluded that our disclosure controls
and procedures were effective. As a result of its evaluation, we have made no
significant changes in our internal controls or other factors that could
significantly affect the controls and other procedures already in place.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None, other than the 2,905,417 post-split restricted shares issued to a our
president and chairman of the board on March 10, 2005, in order to acquire, by
exclusive license agreement, all right, title and interest in and to "The
Swing-Channel TM Golf Mat" and all intellectual property rights associated
with it. No proceeds were generated by this transaction. The restricted stock
issuance was the Company's consideration for the right to exploit, for
commercial purposes, all aspects of the product in interstate commerce.
Item 3. Defaults upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other information.
We are not aware of any other information that should be reported on this
form.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None. All Sarbanes-Oxley certifications are after the signature line at the
end of this document.
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Issuer has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EASY GOLF CORPORATION
(Issuer)
Dated: May 11, 2006
/s/ John Michael Coombs
---------------------------------
By: John Michael Coombs
Its: Chairman of the Board
Dated: May 11, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this Report has also been signed below by the following person on
behalf of the Registrant and in the capacities and on the dates indicated.
Dated: May 11, 2006
/s/ John Michael Coombs
---------------------------------
By: John Michael Coombs
Its: President, Chief Executive Officer
and CFO (Principal Accounting and
Financial Officer)
Dated: May 11, 2006